Top mistakes when choosing a payment gateway
How to choose a payment gateway? Eventually any company has to find an answer to this question, because in the modern world it is simply impossible to accept payments from clients exclusively in cash.
Many other questions immediately follow from this one. Should I choose a hosted or non-hosted payment gateway? Which payment gateway should I choose? And so on.
In an effort to choose the best terms and maximum capabilities, many companies start to make bad decisions and make a huge number of mistakes. However, you know what the worst part is? That many are not even aware of them.
Just as ignorance of the law cannot release you from responsibility, ignorance of these mistakes cannot release you from responsibility for making them.
To prevent this from happening, right now we will list the main ones.
Mistake 1. Low bid guarantees maximum savings
On the site of one of the payment systems you noticed a very attractive rate for processing credit cards. It’s true that it’s marked with an asterisk next to it. However, you have already made sure that this company will provide you with the most favorable conditions and allow you to save money. And in vain, because if you read the text in small print, you will see that on some transactions you will have to pay a higher fee, and thus the overall profitability is lower.
You feel like you are saving money, but in fact you are seriously overpaying.
Why does this happen? It’s very simple. Any payment system charges transaction fees depending on a huge number of factors. In particular, depending on the method of payment, what type of card is used for payment, and so on. Be sure to consider all of these factors, or you will have to pay a higher fee than what the company states in its promotional materials.
How to protect yourself from this mistake? First, pay attention to all the nuances, what commission for what payment will be charged. Second, you can choose a company that charges its customers a fixed commission.
Mistake 2. Not knowing when you will have access to funds
When you sign a contract with a payment gateway, later on the company doesn’t understand why it will lose access to its money for a few days. The whole thing is that some companies have a policy whereby the money from the transaction is not immediately credited to the seller’s account, but several days later. Unfortunately, many companies are absolutely not happy with this, they need to pay invoices as well as other expenses. To avoid this mistake, you can find a payment system that allows prompt access to money and does not accumulate debts.
Mistake 3. Restricting customers in payment methods
The company in principle should not limit their customers in anything, and when it comes to payment methods, you run the risk of losing them.
Regardless of which way your customers pay most often, it is better to give them the maximum choice of different payment methods. After all, you never know how your customers prefer to pay for items. Yes, credit cards are a priority for many, but it’s better if you provide several other popular payment methods in addition to them. This will greatly increase your chances of making a sale.
Mistake 4. Choosing a company that has absolutely no concern for customer safety
Is there anything to add here? The number of reported cases of identity and payment data theft from customers is only increasing every day. Of course, you cannot protect your clients from all the risks, but you can significantly reduce them if you choose a payment gateway that uses the most modern anti-fraud systems in its work.
Mistake 5. Not finding out all the nuances regarding technical support and system configuration
Before you finally make your choice in favor of a company, find out who will configure the payment processing system. If this task will fall on your shoulders, you should understand that without some technical knowledge you will simply lose your time and thus your customers. To avoid this mistake, opt for a payment system that offers simple solutions that you can simply get up and running without any hassle.
How important is 24/7 technical support? Very important. You never know when problems will arise, and it would be nice if you could have the opportunity to contact the company’s technicians, both day and night.
At first glance, it seems like you have a lot of factors to consider to avoid making these common mistakes. In fact, all you need to do is to choose PayDo and get the best conditions both for opening international IBAN and for obtaining a merchant account, high level of security and wide opportunities at once. We make everything complicated as simple and efficient as possible.